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RPL, RICHINA PACIFIC LIMITED
plastic
post Posted: Oct 16 2018, 06:19 PM
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One of the directors has settled. No details. Smart money is getting out while the goings good. Main target looks like Shipley and a couple of others. It will be a pleasure to watch her go down. Winston must be feeling so vindicated.



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What did Uncle Mel do to us?
 
ShareScene.com
post Posted: Feb 3 2009, 10:00 AM
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Company:
RICHINA PACIFIC LIMITED

Code:
RPL

Website
http://www.richinapacific.com/


 
Lizard
post Posted: Dec 2 2008, 07:12 AM
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Had a look at the full documentation. Given the new shares are not going to be listed anywhere and will require permission of the Bermudan Monetary Authority to transfer, the process appears to be designed as the "carrot and stick" approach to getting RPL's public shareholders to hand over shares and therefore transfer increased equity back to REHL.

The purchase price for the shares by RPL is legally required to constitute "fair value", but the means of disputing this may be expensive and are somewhat unclear (NZ arbitration and/or Bermudan Supreme Court). Given the NTA per share of the combined entity must be about $NZ1.70 based on the pro-forma accounts (and the Property Division may well be reported at well below Market Value), this is probably an argument worth having - but not on my account given the small size of my holding.

Besides, no doubt any substantial increase in "fair value" would see RPL using other provisions in law around affordability to avoid buying out holders.

The whole deal appears complex and unfavourable to small shareholders, but I guess that's what most have come to expect from RPL over the years. Perhaps the amalgamation will be voted down - requiring 75% of shareholders approval - but it will still remain unlikely that small shareholders ever receive value for their investment.



 
Lizard
post Posted: Nov 21 2008, 03:25 PM
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That is a rather complicated announcement out of RPL today - it may take the full documentation before I am completely clear on what they are proposing. At first glance, it appears like amalgamation with REHL followed by separation of the stock into four types (letter stocks?) which trade independently and will pre-sequence the eventual splitting of RPL itself.

Interestingly, the company is offering to purchase shares from holders not wishing to participate in the new scheme at a price of 45.47cps - a substantial premium over the recent price of 21cps. In addition, holders seem to retain a "put" option to sell the shares back to the company on any of the dates 30 Jan 2009, 30 June 2009 or 31 Dec 2009 - it's not clear whether this is at the same price, but, if so, this should put a floor under the price for some time.

Apart from the inconvenience of having possibly small parcels of each type of share, this appears at first glance to be quite positive for despondent shareholders in RPL.

 
Lizard
post Posted: Oct 21 2008, 02:17 PM
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The September RBNZ Bulletin made mention of the amount of hot money flowing into Chinese banks in anticipation of a revaluation of the Renimbi. Ultimately, this adjustment has to happen. Maybe not great for the tanning business, but should boost the value of Chinese property and rentals relative to the NZ dollar.

I don't trust RPL management particularly, but I still hold a few RPL on the basis that it is the easiest exposure to the China on the NZX - my only other exposure is via "Henderson TR Pacific Investment Fund" (HRP) and I've never been a big fan of funds either.

RPL's NTA per share has grown while its share price has shrunk. It wouldn't pay to count on a re-rate, but if it ever gains a whiff of investor confidence, the share price could have a long way to run up. A gamble but probably with better odds than a Macau casino at current levels of 24/25cps?

 
Lizard
post Posted: Oct 6 2008, 07:19 PM
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And the RPL share price continues to slide...

Less of a risk that this company will completely self-destruct - simply more likely that it will slide cheaply into the waiting hands of REHL who can then attempt to vigorously extract the underlying asset value from it.

 


Lizard
post Posted: Jul 29 2008, 01:51 PM
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So the dividend declared with full year results has now been cancelled. Not surprising, given no dates ever appeared, despite the original statement that it would be paid "before the AGM".

Sadly, it seems RPL have chosen to put a bomb under any credibility they might have been able to generate from last years impressive profit result. Credibility was the one thing they were desperately in need of after years of seemingly random performance. Cancelling the dividend MAY make sound financial sense, but for a company with their record it just looks desperate. In addition, the fact they made this decision just the day before the AGM just looks like seat-of-the-pants management.

I would not be surprised if shareholders fell out of their seats in hilarity at the meeting as the company tried to point out their share price growth over 4.5 yrs (by reference to a low point in their existence - which may well be revisited post this meeting if anyone ever puts their hand up for more RPL shares again...).
Waving the restructuring plans in the air probably generated another round of mirth.

The interesting thing is that the company hints at needing cash for another acquisition. It begs the question, that if they want more funds, why do they appear to deliberately and callously pursue actions which are detrimental to their share price? The cynic in me wonders if that suits the purposes of REHL holders who have indicated in the past that they'd like a bigger stake.

 
Lizard
post Posted: Apr 9 2008, 08:24 AM
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As it happened, most shareprices seemed to turn north from 1st April. RPL actually firmed a little in March and has been in a reasonable uptrend. So far, looking like a fairly steady trade from my 47-48cps purchases (currently 56cps).

Fairly happy with the annual report. As expected, RPL will focus more and more on wheeling and dealing in Chinese financial and property assets. Amalgamation of the leather operations and listing on the Shanghai stock exchange may have some upside, but I'd expect them to use it as an opportunity to reduce their holding there and apply cash to the financial side.

The rental side is interesting - seems many of their holdings pay minimal rent on long term leases with no ratchet clauses. Given the history and state of the property market, this means flow through of growth in market rentals in Shanghai is delayed and also means some properties being left partially empty until all tenants can be vacated for refurbishment. Short term cost, but long term should book some substantial gains in rental and consequent valuations.

 
Lizard
post Posted: Feb 29 2008, 08:57 AM
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Share price remains soft despite the strong result. Phaedrus has pointed out one reason (on another channel) as being trading of the range. I would suggest something different - FIF regime related selling. RPL share price is one of the few shares potentially affected by this due to being an FIF company with a high proportion of NZ shareholder base. Also being illiquid.

The effect of selling was strong last year, with the price sold down from 15 January until 29 March on no negative news. This year, the effect could be expected to be lower as the reasons for selling will be less strong. Last year, many would have been selling simply to reduce the value of holdings eligible for FDR. Those that bought back in during the year can not then sell again without triggering the quick sale rule. However, if they have already made quick sale losses, then, (if I am correct in believing quick sale gains and losses are pooled), quick sales of RPL shares can be made and the gains netted off against losses elsewhere. In addition, there may still be some small shareholders who choose to reduce their FIF holdings below the threshhold of $50,000 in any given tax year. Or simply those who are overweight in RPL and would therefore prefer to reduce their holdings prior to 1 April.

Might be wrong, but will be interesting to see if the price of RPL once again turns north from 1 April. Any overseas or small investors not subject to NZ FIF tax rules (e.g. those with <$50k cost of shares in FIF holdings) might benefit by buying close to end of March if the share price continues to fall (opinion only and not to be construed as advice!).




 
Lizard
post Posted: Feb 27 2008, 04:27 AM
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Full financial statements now available here.

Looks solid enough. Some of the cashflow looks to have come from a decrease in working capital. A further $8m of forex gains booked straight to equity - will have been more over past 2 months with CNY being steadily allowed to move up. The minority interest of the tracking security was included in the published equity figure yesterday. Removing that NTA for shareholders is actually NZ 84cps at current exchange rates.

 
 


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